EU says Ukraine president agreed on deal

Russian President Putin has revealed plans for a Eurasian Union with Ukraine, Belarus and Kazakhstan [AFP]

Ukraine President Viktor Yanukovych intends to sign an association accord with the European Union after all, EU foreign affairs head Catherine Ashton has said.

Despite Yanukovych ditching the deal last month under Russian pressure, Ashton said on Thursday after returning to Brussels from a two-day visit to Kiev, where she saw huge pro-EU demonstrations, that it would go ahead.

"He made it clear to me that he intends to sign the association agreement," Ashton said.

The announcement came after Russian President Vladimir Putin touted the economic benefits of joining a customs union, known as the Eurasian Union, with Russia and two other former Soviet republics, Belarus and Kazakhstan, in his bid to woo Ukraine.

Putin said during during a state-of-the-nation address that he was counting on Ukraine finding a political solution to its crisis over Yanukovich's decision to spurn the EU free-trade agreement in favour of closer economic ties with Moscow.

"I hope that all political sides can successfully reach an agreement in the interests of the Ukrainian people," Putin said.

"I'm sure achieving Eurasian integration will only increase interest from our other neighbours, including from our Ukrainian partners."

Economic plan

Kiev has been gripped by weeks of demonstrations by hundreds of thousands of people against Yanukovich's decision which have often resulted in violent clashes with police.

Searching for a common ground with Russia is crucial to EU policy on Eastern Europe.

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